a report on california's economy shows a recovery that continues to plod along. katie marzullo is live in the newsroom with analysis. >> reporter: for the last several years when home prices have have been in the news it has been bad, but not this morning. home prices are up, surged more than 6% in one year the biggest jump in six years. median price up $18,000 to $178,000, and california is one of the top 10 states where prices are rising the fastest. new this morning, anderson economic forecast from ucla is out, says housing improvements will help the state and california will continue to grow, but not as much as it used to. the forecast says the new tax revenues ungovernor brown's prop 30, will slow -- under governor brown's prop 30 will slow economic growth but not derail recovery. the jobless rate in california should average 10.5% by the end of the year. it should improve to 9.7% in 2013 and fall further to 8.4 in 2014. one other note of good news, u.s. banks seeing best profits in six years and are therefore leaning more freely. katie marzullo, -- lending